Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS
The Balanced Scorecard (BSC) analysis can identify relationships between different sectors of the company's activities and the interactions between them. Prof. Bernard Morard together with Dr. Alexandru Stancu and Dr. Christophe Jeannette from University of Geneva, Switzerland developed a wa...
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| Format: | Article |
| Language: | English |
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Editura ASE
2018-02-01
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| Series: | Amfiteatru Economic |
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| Online Access: | http://www.amfiteatrueconomic.ro/temp/Article_2706.pdf |
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| author | Ion Stancu Ion Alexandru Stancu Laura Elly Naghi Dragoş Bâlteanu |
| author_facet | Ion Stancu Ion Alexandru Stancu Laura Elly Naghi Dragoş Bâlteanu |
| author_sort | Ion Stancu |
| collection | DOAJ |
| description | The Balanced Scorecard (BSC) analysis can identify relationships between different sectors
of the company's activities and the interactions between them. Prof. Bernard Morard
together with Dr. Alexandru Stancu and Dr. Christophe Jeannette from University of
Geneva, Switzerland developed a way of identifying these relationships and interactions
using the Partial Least Squares (PLS) regression technique. Their technique identifies the
strategic areas (or strategic axes) by highlighting the groups of performance indicators with
the highest correlation coefficient between them. The strategic axes can, in turn, identify
performance sectors of the company. Our final model identified the interaction among the
strategic areas of a financial intermediation services company (SIF) as well as the
interaction between the SIF’s performance indicators and the group they are a part of.
Our goal was to first apply a Principal Component Analysis to find the most important sectors
for a SIF company (e.g. axis 1 = Capital and Results) and then to focus on 4 to 6 relevant
performance indicators, that are strongly correlated with the respective strategic sectors
(axes). The other indicators were discarded or were transferred to other axes where they have
a significant weight, obviously, a little less than on the axis from which they were discarded.
Once these economic judgments on the strategic areas were completed, we applied the PLS
analysis to reveal the correlations between the strategic axes (sectors). These correlations
highlight the intensity of interrelations within the company (SIF) and lead to possible
strategic lines of interaction.
Mainly, we intended: to identify relationships between different strategic axes (sectors) of
the company's activities and the interactions between them using the Balanced Scorecard
(BSC) analysis; to assign to these economic sectors the most appropriate name (for
example, Axis 1 = CAPITAL and RESULTS and so on) and to retain maximum 6 relevant
indicators for each axis; to reveal the correlations between strategic axes (sectors),
highlighting the intensity of interrelations; to lead to the prediction of possible strategic
lines of interaction within the company (SIF).
Basically, BSC explains the relationship between the corporate governance variables and
the company's performance. We intended that, besides the causal interrelations, we would
also identify a logical relationship between the analyzed sectors of activity. |
| format | Article |
| id | doaj-art-6ed26986be6941e2a06f4bc3ebbc0129 |
| institution | OA Journals |
| issn | 1582-9146 2247-9104 |
| language | English |
| publishDate | 2018-02-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Amfiteatru Economic |
| spelling | doaj-art-6ed26986be6941e2a06f4bc3ebbc01292025-08-20T01:57:20ZengEditura ASEAmfiteatru Economic1582-91462247-91042018-02-01204721822810.24818/EA/2018/47/218Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS Ion Stancu0Ion Alexandru Stancu1Laura Elly Naghi 2Dragoş Bâlteanu3Bucharest University of Economic Studies)Geneva University and IATA Director, AME, Amman, JordanBucharest University of Economic Studies, RomaniaRomenergo, RomaniaThe Balanced Scorecard (BSC) analysis can identify relationships between different sectors of the company's activities and the interactions between them. Prof. Bernard Morard together with Dr. Alexandru Stancu and Dr. Christophe Jeannette from University of Geneva, Switzerland developed a way of identifying these relationships and interactions using the Partial Least Squares (PLS) regression technique. Their technique identifies the strategic areas (or strategic axes) by highlighting the groups of performance indicators with the highest correlation coefficient between them. The strategic axes can, in turn, identify performance sectors of the company. Our final model identified the interaction among the strategic areas of a financial intermediation services company (SIF) as well as the interaction between the SIF’s performance indicators and the group they are a part of. Our goal was to first apply a Principal Component Analysis to find the most important sectors for a SIF company (e.g. axis 1 = Capital and Results) and then to focus on 4 to 6 relevant performance indicators, that are strongly correlated with the respective strategic sectors (axes). The other indicators were discarded or were transferred to other axes where they have a significant weight, obviously, a little less than on the axis from which they were discarded. Once these economic judgments on the strategic areas were completed, we applied the PLS analysis to reveal the correlations between the strategic axes (sectors). These correlations highlight the intensity of interrelations within the company (SIF) and lead to possible strategic lines of interaction. Mainly, we intended: to identify relationships between different strategic axes (sectors) of the company's activities and the interactions between them using the Balanced Scorecard (BSC) analysis; to assign to these economic sectors the most appropriate name (for example, Axis 1 = CAPITAL and RESULTS and so on) and to retain maximum 6 relevant indicators for each axis; to reveal the correlations between strategic axes (sectors), highlighting the intensity of interrelations; to lead to the prediction of possible strategic lines of interaction within the company (SIF). Basically, BSC explains the relationship between the corporate governance variables and the company's performance. We intended that, besides the causal interrelations, we would also identify a logical relationship between the analyzed sectors of activity.http://www.amfiteatrueconomic.ro/temp/Article_2706.pdfStrategic sectors (axes)Balanced Scorecard (BSC)Partial Least Squares (PLS)Principal Component Analysis (PCA)Corporate governance |
| spellingShingle | Ion Stancu Ion Alexandru Stancu Laura Elly Naghi Dragoş Bâlteanu Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS Amfiteatru Economic Strategic sectors (axes) Balanced Scorecard (BSC) Partial Least Squares (PLS) Principal Component Analysis (PCA) Corporate governance |
| title | Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS |
| title_full | Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS |
| title_fullStr | Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS |
| title_full_unstemmed | Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS |
| title_short | Predicting Strategic Areas of a Financial Intermediation Services (SIF) Company Using BSC and PLS |
| title_sort | predicting strategic areas of a financial intermediation services sif company using bsc and pls |
| topic | Strategic sectors (axes) Balanced Scorecard (BSC) Partial Least Squares (PLS) Principal Component Analysis (PCA) Corporate governance |
| url | http://www.amfiteatrueconomic.ro/temp/Article_2706.pdf |
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